Question

Phyllis invested a total of 70000 dollars, spread across two accounts. One account has a simple interest rate of 5 percent per year. The second account has a rate of 6 percent per year. After one year, the total interest earned on these investments was 3870 dollars. How much money did she invest at each rate?

Answer 1

$33,000 invested in 5% account

$37,000 invested in 6% account

Explanation:

Let amount invested in 5% be x

and amount invested in 6% be y

We can write:

0.05x + 0.06y = 3870

and

x + y = 70,000 [or x = 70,000 - y]

Replacing 2nd in 1st we get and solve:

0.05(70,000 - y) + 0.06y = 3870

3500 - 0.05y + 0.06y = 3870

0.01y = 370

y = 37,000

and x = 70,000 - 37,000 = 33,000

Thus,

$33,000 invested in 5% account

$37,000 invested in 6% account